Graph SYMCNEW!
September 2nd, 2010 by Trefis Team
Symantec (NASDAQ:SYMC) is going to face stiffer competition from McAfee (NYSE:MFE), which was recently acquired by the semiconductor giant Intel (NASDAQ:INTC). Symantec competes with McAfee in the security software market for consumers as well as businesses, while its major competitor in storage software market is EMC-acquired Data Domain.
Fierce competition from bigger players could block Symantec’s market share growth in the storage software market, leading to a modest stock downside. We estimate Storage Software constitutes around 40% of the $22 Trefis price estimate for Symantec’s stock, (about 62% above the current market price of $14).
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Graph JNPRNEW!
September 2nd, 2010 by Trefis Team
Around one-third of Juniper’s (NYSE:JNPR) stock price can be attributed to the company’s router business. Juniper has about 25% market share in core routers. The company faces challenges from router competitors like Cisco (NASDAQ:CSCO), Tellabs (NASDAQ:TLAB) and Alcatel-lucent (NYSE:ALU). Despite these challenges, we expect Juniper’s router share to increase over our forecast period.
We currently have a Trefis price estimate of $24 for Juniper’s stock, about 14% below the current market price of $28. Below we highlight the historical and future trends for Juniper’s market share in core routers and edge routers.
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Graph INTCNEW!
September 2nd, 2010 by Trefis Team
Mobile chipset manufacturer Qualcomm (NASDAQ:QCOM) faces a new challenge from mighty Intel (NASDAQ:INTC), which recently expanded its mobile processor capacity by acquiring cellular baseband supplier Infineon for $1.4 billion in cash. Qualcomm also competes with Broadcom (NASDAQ:BRCM), Freescale, Marvell (NASDAQ:MRVL), MediaTek and Texas Instruments (NYSE:TXN).
Cellular basebands are chipsets that handle voice and data communication in wireless devices. Infineon’s customers include Apple (NASDAQ:AAPL) and other mobile phone manufacturers.
We don’t see Intel posing a significant threat to Qualcomm in the short term. However, there could be an 8% downside to our $48 stock price estimate for Qualcomm if Intel manages to snatch a significant share of the mobile chipset market by the end of the Trefis forecast period. Our analysis follows below.
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Graph RIMMNEW!
September 2nd, 2010 by Trefis Team
The people have spoken, and Research in Motion’s ballyhooed BlackBerry Torch smartphone is officially…not an instant hit. RIM (NASDAQ:RIMM) only sold 150,000 Torches during the first weekend after the phone’s August 12 launch. By contrast, Apple (NASDAQ:AAPL) moved 1.7 million iPhone 4 units during the first three days after its launch in late June.
RIM competes mainly with Apple, Motorola (NYSE:MOT) and Nokia (NYSE:NOK) in the mobile phone market. The company had high hopes for the Torch, which is the first BlackBerry equipped with both a physical keyboard and a touch screen interface, and the first smartphone to run BlackBerry’s new OS6 operating system.
However, it does not appear that these new features are enough to make the Torch stand out in an increasingly crowded smartphone market. RIM can’t afford to release many more phones like this one. There could be a significant downside to our $72 stock price estimate for RIM if the company’s share of the smartphone market grows more slowly than we expect during the Trefis forecast period. Our analysis follows below. Read More »
Graph SNDKNEW!
September 1st, 2010 by Trefis Team
SanDisk (NASDAQ: SNDK) and Toshiba (PINK:TOSBF) recently launched a joint venture to build Fab 5, a state-of-the-art flash memory plant located in Mie Prefecture, Japan. We think Fab 5 could help SanDisk increase its share of the global flash memory market, creating a potential 3% upside to our $50.21 estimate for the company’s stock price.
SanDisk sells flash memory cards for use in digital cameras, camcorders, mobile phones, USB thumb drives and game consoles. Flash storage technology allows data to be stored in a durable, compact format that retains the digital information even after the power has been switched off.
In addition to Toshiba, SanDisk’s competitors in the flash memory business include Samsung (LI:SAMS), Hynix (PINK:HXSCF), Micron (NASDAQ:MU), and STMicroelectronics (ADR:STM).
Our analysis follows below. Read More »
Graph AAPLNEW!
September 1st, 2010 by Trefis Team
Cisco (NASDAQ:CSCO), which competes with Juniper (NYSE:JNPR) in the digital network equipment business, is planning to unveil a new tablet PC in the first quarter of 2011.
The move is further evidence that Cisco is moving beyond its core router and switch business to provide a broad range of collaborative technology for the enterprise market. If the Cius tablet succeeds, we see a modest potential upside of 1% to our $24.76 stock price estimate for Cisco. Our analysis follows below. Read More »